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a a lot of volatility in the market today with the vix having the biggest two-day move in some time. s&p is down 10 and nasdaq down 24 points. ty? >> losing steam. sue, hurry home in the wetter this. that will do it for "power lunch." >> street signs starts right now. see you tomorrow. call this the teflon market because nothing is sticking to this thing. not europe, not unemployment, not debt. we're going to find out why. the big man, boone pickens, is here. he's going to lay out his three rules to break our addiction to oil. plus, in the old days people wore something called a watch. we're going to tell you why this ancient device may be the new tech battleground. and sheer madness. we dig into lululemon's problem

from the bottom up. by the way, we're being looking at the parliament of cyprus where the vote should be held today regarding the bank tax. any news that m coulds out of this, the vote that comes out of this, you will hear it first. >> indeed, we will. we were talking about this the nonstick market. what we have up here is a nonstick fry pan. we put in some of the negative things that have been thrown at this market and that amazingly this market has managed to shrug off. okay, yes, we are down the last couple of days but we're still near multi-year highs if not near record highs for those three indices. you could probably see ben bernanke or one of the other bankers shaking that fry pan behind us. let's look at the things that we have inside that fry pan. we have, for example, 7.7%

unemployment. we have the flags of the more troubled european nations. for example, greece, spain, cyprus, not to mention $16 trillion plus in debt and all of the stalemates of recent months and the total and utter shrugging off of sequestration. nothing has been sticking to this fry pan. why? bad news equals good news by the boj, you name it, the central bank or maybe we're just so bombarded with you will a of the negative headlines that the market s market is increasingly immune. bob, why is your theory about why this fry pan is turning out a chicken chow mein without sticking? >> the reason is because the markets believe the central banks of the world have become the ultimate nanny state, that they are going to take care of everything. that remains to be seen but even in europe, if you'll notice, the

declines have been relatively modest. take a look at the dow industrials. we moved on europe. we are moving on europe when word came out that the ruling party may abstain from the vote. we're not sure what is going on with the finance minister either. that's what happened there. moved down briefly. if you look at europe versus the united states, we're moving perfectly in tandem. here's the green. that's the european etf. you see this today, perfect match exactly moving together. so we're moving as the euro is moving and as europe is moving. i want to move on and talk about one group completely independent of what is happening in europe. schlumberger yesterday said north american activity was waker than expected. oil rig prices were dropping. it was a one-two punch to the oil service and it's happening again today. take a look at big declines. 1%, 4%, all of this in the big

oil service industry. this is completely independent of what is going on over in cyprus. mandy? >> thank you, bob pisani. >> coming up in about 20 minutes, we've got boone pickens. >> yes, we do. >> right now, let's talk about more of this nonstick market. mandy said, are we permanently backstopped by the federal reserve? perhaps. but the new poll says, maybe not so fast. let's go down to steve liesman with that. steve? >> we asked our 54 respondents what was behind the record levels and we gave them the fed as one of the answer ands it was the leading response. it wasn't the only answer. what you see is that 12% said financial stabilization was a big reason for it. 18%, earnings improvement and

24% attributed to federal quantitative easing. some of what the fed does is related to economic improvement and earnings improvement. in general, they gave other reasons for it as well. not just the fed being behind this. i want to show you also the curious answers we got on the effective quantitative easing when it comes to the bond market, the stock market, and unemployment. by 48 to 44 on both mortgages and bonds, they say it does not lower mortgage and bond yields, quantitative easing, that is. 69 to 21% say it does not lower unemployment rate. but you can see there 75 to 17 they say it does help increase stock -- the stock market values. now, take a look at this list, guys. i think this is a hopium list. this is a list of the biggest problems out there. 29% say taxes, regulations. that's the biggest problem out there. when i look at what the previous answers have been, the european financial crisis, the u.s. financial crisis, all the other issues that have been out there,

the idea that taxes and regulation is the biggest issue, that to me speaks of progress. not that it's not a big problem but the crisis issues are not our biggest problem. and guys, just a little bit of a nerd alert if you don't mind for a second, i want to show with you something that is of a lot of importance to the fed and fed observers and that's, are the fed observations buying $85 billion of assets every month hurting liquidity in the market? you can see in general the market is saying no when it comes to mortgages and bonds. we just need to monitor. this is something that the fed is monitoring. they are polling on this. we are polling on this. i want to just put this out there as a baseline for the next time if this thing moves, if liquidity starts to become a problem and this will pick it up and then it could change fed policy. >> steve, my math skills are notoriously weak. so you're going to have to help me help you help our viewers.

28% of the market rise is because of the fed and then you have the other stuff. but yet in the next chart, the line chart, your respondents said it only raises it to 28%. it's only responsible for one-fourth of our gain, roughly. so what your respond eents are saying does qe do this? 75% say it raises the stock market. it doesn't say by how much they are responsible for it. but they are very divided over whether or not quantitative easing is successful in lowering bond rates and mortgages and certainly very definitive and has no effect on unemployment. i think this is a particularly -- what do you want to say, a hawkish group of people who respond to this survey. i think the federal reserve would argue that it does lower

rates and the lower rates translate into higher stock prices and to better growth and unemployment. >> and by the way, steve, you ex excused yourself for a nerd alert. it's a very good thing. >> you'll notice this is the only place i brought this information to you and i know you guys would appreciate it and we're going to monitor it over time. if liquidity and market functioning become as problem for the fed purchases, it's going to be a big reason why the fed might dial back. with he need to monitor this. >> look at the output, i don't think steve is wearing a watch. >> not wearing a watch. that's for later on in a segment in the show. okay. heading to the teflon world, housing stocks hitting the highest in years. dia diana olick is in florida. >> reporter: that's right. the housing numbers were good. very good, not great. we have to remember, when we

look at home builder sentiment yesterday, it ticked down two points. the builders are talking about problems finding land and higher costs for land and material and they are talking about credit, mortgages for the buyers and credit for them to build. we take a look at the housing start numbers today. single housing ticked up half a percentage point. multihousing was better. you see the permit numbers ticked up a lot are mo. single family, up 2.7%. multifamily, up over 8%. and that's the point i want to make here. multifamily has been driving this market. we're here in miami talking about this new condo boom but there's a hedge going on. a lot of builders are building multifamily residents. they are hedging their bets about the condo buyers and sellers and where the market is going to go. some say perhaps they are going to be turned into condo

conversions in the famarket. if the rent comes down and owners decide to sell, you're going to have a glut on the market and need the rentals again. they are really hedging on both sides. >> thank you very much for that. >> everybody is feeling pretty good about the fed. so can anything stick to stocks and bring them down? let's bring in cnbc con brtribu, joe, foo this conversati joe, into this conversation. >> we see it in various surprise indices and as we're likely to learn tomorrow, the fed is going to be happy with qe and will pat themselves on the back. we are still in the sweet spot and the fed is getting into it. >>en oh the other hand, if data

continues to get better, it's been better than expected. won't that be bad news for the market because they will start to price out qe? >> it will, mandy. i think we're probably still minimum three or four months away from that. >> no, it won't, joe. >> the fed needs to see at least another three months, four months of strong unemployment and then i think that conversation of tapering qe gets louder and that's when you see markets -- >> before i let steve liesman get in here, mandy, did you suggest that if bad news is good news, good news is bad news? >> i certainly did. >> my mind is blowing up, steve. >> i disagree with mandy's question and with joe's answer the following way. it assumed that there's a free lunch out there. that the fed has not to policy appropriately to the economy. mandy, if the economy improves causing the fed to dial back, that should be a wash if the fed

gets it right. >> it won't work that way, though. >> let me finish the thought. in theory, and i agree that in practice it's never perfect on the short-run basis. it should work out that fed stimulus should be a replacement or at least somewhat perfect replacement for economic growth. you dial one back, you get the other and the ultimate effect should be at least reasonably neutral as to economic growth. >> joe? >> it never works that way, mandy. in some ways, the 95 soft landing was the worst thing that happened because the fed learned from that that it could fine-tune growth and we ease numerous times in the late '90s. that caused the housing bubble. i do not believe when the fed backs away from this extraordinary and unprecedented stimulus it will be smooth. i just can't imagine that happening. and i think bond investors are going to suffer immensely, much more so than the '94 tightening experience. >> i want to bring it back to the markets. here's the summation the last few years, joe.

tell me if you agree. okay, europe is out there, we're doomed. the election is coming, we're doomed. payroll tax coming, we're doomed. we're doomed, we're doomed, we're doomed. >> it has. and the economy has improved and it's not been great. i think it gets better now finally because housing is finally at the point where no one is questioning whether it's recovering. they are just questioning the speed of the recovery. but, again, until the fed actually pulls back from some of this extraordinary easing, many investors, especially on the equity side of the business, will question the sustainability the rally without the fed propping it up as much as some people think it is. >> if we took the fed out of the equation, joe, is there anything else out there that could potentially be negative enough, maybe even something we haven't encountered yet, that could make this market come unstuck? >> i think it would have to be something geopolitical, some on the oil front.

certainly there is some fear in asia we relations to the japanese and chinese. no, i don't think so, mandy. we're still in a very solid, cyclical spot. >> i think the issue, guys, is when you ask that question, mandy, the correct question is, joe, if there was 3% gdp growth, if the unemployment rate went down around 6.5 or 6%, 200, 300,000 job growth, are you telling me that this market is a sell under that job context? i would say not. >> i would say that when bonds go down they go down hard. that's when you have the great retags back into stocks. >> so you're saying it's a buy? >> no, i'm saying initially i think it's bad for financial assets when the fed steps back. ultimately, it's good for equities and it's horrendous for bonds. >> that's my point. >> joe and steve, we've got to leave it there. let's all agree on this thing. we cannot wait until the time

when good news is good news and bad news is bad news. >> yeah. >> simple dreams folks. simple dreams. >> and if there is going to be a free lunch, steve, it will be cooked up in that nonstick where ben bernanke is your fry cook. that's all i'm going to say. >> and we didn't violate any trademarks. >> don't forget, we here on "street signs," we're the fed show. at 1:50 tomorrow. we're easing out a couple extra minutes. >> dekrep pit, embarrassing, words that you have described "street signs." no, it's about america's failing infrastructure. a new report card that will have you outraged and probably afraid to drive. and also sheer madness. lululemon and its see-through pants problem. >> why is it a problem? >> some people think it's a good

thing. that's all coming up. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities.

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deposit tax and 36 against, 19 abstaining. a member of the ruling party saying that they were abstaining from this vote because a simple vote of "no" without a viable alternative was going to send a bad message to the markets, a bad message to the eu and going to be potentially catastrophic, he felt, for cyprus. so at this point it looks like it may be carried as a "no" vote and we also want to update you on -- sources have told cnbc, a second source has confirmed that the finance minister did offer -- tendered his resignati resignation but it was rejected by the president of the cyprus. >> to recap, 36 against, 19 abstaining. no word yet on anybody voting for this new bank tax. but as bertha said, the situation inside cyprus very

fluid. >> in the meantime, gold catching a bid there and you've got the euro pushing further to the downside. >> the problem is, with flight to safety, america's airports stink. so it's going to get harder. >> we may need a hearing on america's crumbling roads and bridges because a new report gives our infrastructure a d plus. it may not be an f but it sure isn't good. if that doesn't worry you, maybe this will. there are more than 67,000 bridges. classified as structurally deficient in america. pennsylvania governor ed rendell is here with us now. governor, another disturbing report from the asce. how do we do something about this? >> well, it's interesting, the last report was 2009 and the infrastructure got a d there. it went up to d plus based on some investments, the federal stimulus investments, some things that states have done, few things like rail jumped from

a c minus to a c plus because of the joint program. so there were some good news but it's still pathetic. in 2005, the u.s. infrastructure was ranked best in the world. last year they ramnked us 14th best in the world. we are dropping like a stone. we are falling apart and falling behind. the only way we can change it is to make good short-term investments and the president has called it and more importantly we've got to develop a long-term ten-year revitalization program. we're the only g-20 fr infrastructure rebuild program. >> what will call for the millions or billion dollars due when you consider by 2020 the report says that we need $3.6

trillion in investment. where is that money going to come from? >> that's actually a little deceiving. there's 2 trillion already in the state, local, and federal pipeline. they are calling for an additional 16, which is $200 billion in investment. the cbo, a conservative organization, set $180 billion of new investment in our infrastructure would be paid for by economic growth and societal benefit. we've got to determine whether we're going to invest. there isn't a business that either of you could name that grew successful in this country without investing in its own future. we can do this. it's not -- when we say $200 billion a year or more, that's not all federal. it's state, local, and getting the private sector involved in infrastructure. >> do you think in order to pay for it we're going to have to go to greater usage fees.

now you've got the ohio turnpike, pennsylvania turnpike, they are all -- ohio turnpike, is that the way to go, though? get people to use this more? >> sure, that's the way to go but the gas tax keeps dropping every year. the yield because of the cafe standards, a lot of people are driving alternative vehicles, we've got to find some way to doll a vehicle miles travel tax. there are some ways to do it that are not intrusive that don't violate your privacy and i think we've got to fairly quickly go about shifting to that type of system. how do states handle infrastructure? they borrow. judicious borrowing. pennsylvania had the highest number of defective bridges. i borrowed $400 million to attack those bridges and with stimulus, last year governor, we were preparing 1400 bridges at one time. a the lo lot of investment and

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well, if you thought a new york minute was impressive, check out one minute on the internet. a new study says that in the time it's going to get me through this, 204 million e-mails are sent, six million facebook pages are viewed, at least 1.3 million clips are watched. amazon racks up $83 million per minute and that's a busy minute. >> that's a very busy minute. wasn't the whole e-mail thing and internet supposed to make our lives easier and less cluttered? i think it's done the opposite. coall that buzz really just doesn't added a up to much. julia boorstin explains.

>> reporter: that's right, mandy. coca-cola says social buzz has no impact on short-term sales despite the fact that coca-cola had 62 million "likes" and about 700,000 twitter followers. but all of that social chatter doesn't boost the bottom line. and facebook actually agrees, saying focusing on the quantity of buzz misses the point and it's actually all about the number of people it reached. it cites a study of 60-plus campaigns which found that the campaigns that focus canned on reaching more people rather than generating higher buzz generated 70% on investment. coke is not changing its strategy, saying its display ads are 90% as tv ads. in contrast, search ads are only half as effective as tv. coke has to figure out how many messages it reaches. and the biggest challenge is the fact that it's hard for come

computers to tell whether social buzz is good publicity or bad. >> all right. rethink that. thank you so much, julia boorstin. coming up next, the stark headline that has suburban soccer moms everywhere turning red. and the man, boone pickens, is here. he's going to lay out his three golden rules for ending our addiction and embarrassing dependence on foreign oil. that's coming up next. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

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welcome back to "street signs," the parliament in cyprus has rejected that controversial 10% bank tax in a show of hands, 56 member body voted it down. 36 with 19 members of the ruling party abstaining. bring it down without a way out that is putting cyprus uncertain. they will resume operations. i want to highlight our viewers

now how much of a quarter this could back the european bampg into. the cbc threatened to withdraw aid to the ecb if this is rejected. >> right. >> if this is rejected, the ecb, a, will maintain credibility or chicken out to save cyprus from defaulting but losing credibility. >> down about half of a percent, it's off the lows of the i da. we're down to 1,285. >> all right. boone bic kepickens is joining a first on cnbc interview. we're not going to ask you about cyprus, buddy, don't worry about that. i want to walk through your golden rules here. basically, the regulations you say identify the archaic rules.

you're not against all regulation? >> oh, not at all. just what you have as natural gas, domestic fuel, is taxed greater than diesel which you assume comes from foreign oil. all of that can be straightened out and you're going to have to take care of it at the state level and federal level both. >> all right. rule number two, re-examine, possibly end 40-year-old energy programs. what is your beef with the sbr. >> brian, look, we have no energy plan in america. so there isn't anybody in washington that looks at these and says, maybe we don't need

this anymore. and the reason that has happened is the oil and gas industry has done a tremendous job in finding more oil. our oil production is two million barrels per day in the last two years and here you are with the spr. that is in case you have an interruption, like it's 40 years old, is the spr when we decide to do that. we have 750 million barrels in storage and our cost is about $28 a barrel. so if you started to eliminate some part or all of that spr, you know, you create one heck of a lot of money, is what will happen. >> don't you sleep better at night knowing that it's there in case we need it. >> tell me the case where you would need it. >> if we have a major problem where imports of oil and crude products are cut off, or slowed dramatically. pipeline bursting, whatever it could be. that's why it's there.

>> well, the pipeline bursting, that's not very many barrels of oil. pipelines can be fixed very quickly. but where you -- where it was -- we passed it, we decided to do it, was back after the arab embargo of '73. so here you are and from the strait of hormuz, the fifth fleet is responsible to keeping the strait open and of the 17 million barrels, we use about 10%. 10%. that's all. so we can cover that. that's easily covered. natural gas, for instance, going to heavy duty trucks, that covers it twice. that's three million barrels a day. so if you -- things have have changed. resources are better understood. >> right. >> and so let's look at it. you may not want to take all of

the spr out. >> yeah. >> okay. another thing you can do on spr is, for instance, if the iranians -- >> boone? >> yes. >> just for the sake of time, i want to get to your third rule and that is looking at the former north american energy appliance with mexico and canada. >> there it is. you can put north america together and now you're energy independent. you don't need mid-east oil and -- or anyplace else around the world. you can get it from africa, too, venezuela, nigeria. so you've got it solved. but nobody proposes, let's have an energy plan. i'm the only person that keeps saying that. you've got to get an energy plan. we're the only country in the world without an energy plan. let's get one. >> i want to ask you really quickly, is the ethanol boom dead? we've been hearing about the

persistent drought. nearly two dozen companies have had to holt production due to lack of demand. is it dead? >> ethanol was a bad idea to begin with. the way you insert ethanol into the gasoline stream, that instead of doing 10%, you should have done barrels instead of a percentage and all. so you keep stepping up what you're -- now you're going to get up to 15 -- i don't know. 15 million gallons. anyway, you are now up to 13 going to 15. so it's totally unnecessary and the reason the gasoline price is going up is because there's not enough ethanol. so you either buy ethanol credits to get away from -- okay. >> i think we've got to leave it there. boone, always a real pleasure to have you on the show. thank you very much for your thought, the interesting three golden rules. >> i'll see you in three weeks, boone.

thank you. >> thank you, brian. ebay, upping the ante. and lululemon's fashion faux pas. >> let's find out what is coming up on the "closing bell." >> what a good idea. thank you for asking. john malone's cable media. we'll find out if he's just getting started on a cable buying spree. also, we'll hear from one strategist who says this pullback is a buying opportunity for stocks. and here's the kicker. until recently, he had been one of wall street's biggest bears. a familiar name on "closing bell" has changed its spot. and nfl is teaming up with a private equity firm. a private equity firm explains what the league wants to invest in. we'll see you at the top of the hour for the all-important last hour of the trade. first, "street signs" is back after this quick break. [ male announcer ] this is joe woods' first day of work.

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ebay is ebay is getting an upgrade from a hold to a buy. the analyst that made that call is joining us, managing director of internet media exchange. why the upgrade, sir?

>> well, a few things. if you look at the chart, the stock over the last 30 days is down 13, 14%. it was as high as 57. yesterday it broke below 50. the valuation is pretty attractive and in fact when you compare it to amazon, it's very attractive. you look at the core business. it actually continues to do really well. both for marketplaces and pay pal. and last but not least, and one of the reasons that the stock did go down, is because mastercard is in the process of imposing a new fee that will impact pay pal and to a certain degree there are still a lot of unknowns on that issue. but we effectively just ran a worst case scenario that would lead us to believe it's not a big deal at the end of the day. >> i really, really -- i'm glad you brought up amazon. here's the interesting thing. it feels as if ebay is upping the ante here. it's overhauling its fees. it's going to be a one-time fee

as opposed to the various structure i structures and whatever. is this going to make ebay more productive? >> we think so. it's been in a turn around mode. marketplace was in disaster four years ago. i think john has done a really nice job focusing in on the consumer, on the engagement, the clarity of the offering and that has worked and that's why you saw marketplace revenues showing nice acceleration. now they are growing at or even slightly faster than e-commerce. what you're referring to is what ebay is now deciding to do on the seller side. >> right. >> so they are looking to make the seller value proposition a lot more straightforward. in fact, they are cheaper now than amazon and so, yeah, i do think that they are going to give amazon a run for its money. >> let the competition heat up. thank you very much. well, a pain in the rear for lululemon.

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new new reports that samsung may be getting into the smart watch game, that is what bloomberg is reporting. they are constantly exploring new technologies. this is of course after apple reports that it is building a phone referred to as the watch. garmin, they have gps in watches. what is going on? >> garmin down today hitting a 52-week low. i spoke with analysts who say a report that apple like samsung is developing a wearable device compared to a much wa. garmin has devices that allowed people to track how far they run. this means could mean more competition for garmin which is already down some 17% this year.

brian, back to you. >> josh, thank you very much. let's bring in mobile editor todd hazelton. now we don't just have battling products. we have battling rumors. >> that's right. >> this is a watch war. >> samsung actually does have gps tracking on it, it will track your calories burned and how fast you are moving. it's not a watch, though. it's like a wristwatch. i think we're going to see a boost in them. we got a confirmation from the executive today. >> >> so why do you think ap peal is going to get this right? >> despite the stock being down, the company buys their products all the time. you buy their tablets, phones, why not buy their watches? >> is this a case of apple needing to get this right?

>> i think so. . >> i have an eight buck watch at home. it's a kasio with a "k." i wear it once in a while. why is this a product that people are lacking forward to, unless -- >> geeks are looking forward to it. >> well, yes -- >> what's the population -- >> well, here at cnbc, no. it's a small percentage. but unless it gets rid of my phone, why would i buy it? >> it's an accessory to your phone. it's sort of like, oh, maybe i can check my e-mail real quick? but what if apple added siri to it and you could say, siri, what's the traffic like? >> in other words, it needs to replace the phone.

it needs to have e-mail, gps, mapping -- >> it needs to be phone. >> it cannot be as well as the phone, surely. >> i don't think the first product is going to replace the phone, by any means. i think it's going to be an accessory to your phone. >> would you buy it? >> i would have to see it first. $300 is a lot. it will probably be at a $200 or $300 price point. that's a lot for a watch that might break in the shower. >> why wear your watch in the shower? >> i wear my watch in the shower. i don't even know how to take it off. it's complicated. todd hazelton, thank you so much. in the meantime, it looks like lulu lemon is doing the downward dog, mostly because of its yoga pants debacle. transparency gate. do a google search of lulu's see-through yoga pants. it's great fun and get a lot of laughs. the stock is down 3% in the worst trading sessions, posting its worst three-day loss since august the 1st. but they're still saying lieu u

lulu will outperform. with cowan and company, faye, ladies first. you have an outperform. why are you not faced by this sheergate. >> i'm definitely phased by what's happened. but the key thing is, where does underlying demand come out? and embedded in the dramatic release last night, we saw the company is still running double digits, same-store sales. women love this product, increasingly, men, 15% of sales, love it too. view this as a flip, unfortunate. we want more answers, we want toe so it correct, but demand is what it's all about. and they definitely have demand. >> sam, serious issue or a blip on the radar? >> it's difficult to say. the problem is lulu has built their business on very good product and the relationship and

the whole experience you have within the store. and this item is a very big item. it's not just a little item. >> if people love lululemon's product, and they do, and you get a bum one, pun intended, you're going to return it and get a new one. it's not like you're going to hate the company. >> you're not going to hate the company, but if this take eight weeks to fix, and they get a bum wrap, they don't find that one pant, they might not find other things and they're opening the door to try another brand that they may not have tried otherwise. and they've had the history of creating great relationships with both their customers and the investors. and in the case of this press release, i think because they basically went radio silent because they're announcing earnings in a couple of days, there's a lot of conjecture going on to what's real and what's not here. and that's really a change in the way they're doing things. i was talking recently, comparing it to apple, for instance, this is sort of that kind of a flyer.

and when they hiccouped on the maps, that was almost the beginning of what was going wrong there. i'm not saying that's the issue here. but at the kind of multiple it's been at and so on, if there's a hiccup, it's hard to own the stock. >> the crowd gets a little tarnished. faye, already lululemon has put out their own impact of what kind of sales there might be. do you agree with their assessment? >> it's unclear, because as sam points out, they didn't put out much information. but i was in a store first thing this morning when it opened. there were plenty of customers there, the salespeople were as helpful as ever. if there's one company other than apple where the store employees make a big difference and will continue to make a big difference and will continue to intensify the bond with consumers, it's lulu. nike's a fantastic company, but even nike cannot replicate the lulu environment. i don't think they're opening a wedge for competitors.

i do think they've opened a wedge of sorts with investors. and they've got to fix that. i think it's unfortunate that the communication was not more elaborate. but looking forward to learning more on thursday. >> so this is a quality problem, right? in asia, where, of course, these pants have been manufactured, do you think that lululemon might now do the currently increasing trend of onshoring their manufacturing? >> maybe. but i think it's more of a -- i don't think so. but i think this is not about the product make, this is about the material make. and i think it means that they probably, they might have gotten -- again, we don't have the information. they might have gotten a little bit lackadaisical on the kind of people they had on the ground and the quality control that they needed on the ground. >> faye, very quickly, tell us why we shouldn't be afraid to buy a stock at what, 12, 13 times book value when under armour is trading at 6 times book, gap at 5 times book. >> it's very hard to answer in a sound bite, but this is -- i'm not saying you shouldn't buy the others, but this is a -- it's just a terrific, unique brand

with a real mote. the stores and the brands are a mote. even nike cannot compete with them. and gap, it's quite clear they have very challenging to do so as well. they will continue to grow as a small store base, just starting overseas. our research shows the average lulu customer owns four or five items already. very deliberated to buy -- will be very delighted to buy more. and we think that's going to continue. >> faye and sam, thank you very much for joining us. i'm glad we have driven a wedge into that story. >> clearly, not a lot of impact on their bottom line or tail risk, but we got into the discussion, nonetheless. coming up next, a new twist to hiding your money under the mattress. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above.

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